Double taxation

Context (archaeology)

Value-added tax

Linguistics

Philosophy

Biology

Chromatography

Tax credit

Accounting

Economics

Tax reform

Business

Corporate governance

Paleontology

Emerging markets

Monetary economics

Public economics

Vietnamese

Agency cost

Corporate tax

Industrial organization

Chemistry

Sample (material)

Tax avoidance

Finance

Indirect tax

Shareholder

Cogent Business & Management

Corporate tax avoidance is an act aiming at reducing tax amount liable to the government, which is expected to raise firm value. However, agency theory postulates that opportunistic managers can lower tax liabilities through the arrangement of complex transactions, enabling them to shirk or pursue own interests. Therefore, the need to examine the link between corporate tax avoidance and firm performance is evident, yet there has not been any research on this in the context of Vietnam, a country plagued with tax-avoiding cases. We are the first to examine the empirical link using a sample of Vietnamese listed firms over the period from 2010 to 2016, using a wide-ranging set of performance and tax-sheltering indicators. Overall, the results indicate a mixed relationship between corporate tax avoidance and firm performance in Vietnam.

Does corporate tax avoidance explain firm performance? Evidence from an emerging economy